Unlock Premium Data: Up to 50% Off InvestingProCLAIM SALE

ASX 200 to dip as Fed minutes show inflation concerns

EditorOliver Gray
Published 23/05/2024, 09:06 am
© Reuters

Investing.com - Australian stocks are expected to open lower on Thursday, mirroring Wall Street's decline. This downturn follows the recent US Federal Reserve meeting that expressed apprehensions about the inability to temper inflation effectively.

ASX 200 Futures dropped 1.3%, reflecting Wall Street's struggles. The S&P 500, slipped by 0.3%, fueled by fears that the Federal Reserve might keep interest rates elevated for an extended period.

⚠️SPECIAL PROMOTION! Enjoy the AI InvestingPro tools and strategies for A$13.2/month thanks to a limited time discount on the 1-year Pro subscription! CLICK HERE to take advantage before it's too late, and know which stocks to buy and which to avoid no matter the market conditions!⚠️

The minutes of the two-day Federal Reserve meeting in May revealed that despite the participants' belief that the monetary policy was "well positioned", several officials expressed readiness to tighten the policy further if necessary.

In response to these minutes, US Treasury bonds experienced a drop, with short-dated debt being the most impacted. Additionally, oil prices fell below $US82 a barrel, and gold saw its most significant decline since April, falling 1.7% to around $US2,379 a tonne.

Nvidia's Shining Moment

In the midst of the market downturn, US stocks managed to reduce losses before the close of the bell, thanks to the impressive quarterly results from NVIDIA Corporation (NASDAQ:NVDA). The renowned chipmaker announced record quarterly revenues of $US26 billion, an 18% increase from Q4 and a staggering 262% rise from the previous year. Furthermore, Nvidia announced a 10-for-1 stock split and increased its dividends.

Nvidia's shares rose by 5.7% in extended trading and are set to open above $US1000, marking a first for the company.

However, not all stocks fared as well. BHP (ASX:BHP) Group Ltd ADR (NYSE:BHP) US-listed shares plunged by 4.7% in New York following Anglo American (JO:AGLJ)'s rejection of the miner's latest offer. Despite this, Anglo American has given BHP a week to present a more appealing fourth bid.

Anglo's main concern is the proposed spin-off of the South African assets, which they view as overly risky and expensive.

Among local companies, Nufarm Ltd (ASX:NUF) is set to release its earnings on Thursday. Several companies, including GQG Partners Inc DRC (ASX:GQG), Karoon Energy (ASX:KAR), Pepper Money Ltd (ASX:PPM), Resolute Mining Ltd (ASX:RSG), Stanmore Resources Limited (ASX:SMR), and Ventia Services Group Ltd (ASX:VNT), will be hosting their Annual General Meetings. Meanwhile, Aristocrat Leisure Ltd (ASX:ALL) and Orica Ltd (ASX:ORI) will trade ex-dividend.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.